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Here’s Why Microsoft Might Not Update HoloLens for 2 Years

By
Jonathan Vanian
Jonathan Vanian
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By
Jonathan Vanian
Jonathan Vanian
Down Arrow Button Icon
February 21, 2017, 3:17 PM ET
Volvo Cars Microsoft HoloLens
Volvo Cars Microsoft HoloLensCourtesy of Volvo Cars

Don’t expect Microsoft’s high-priced HoloLens augmented reality headset to drop any time soon.

The tech giant is said to be delaying a cheaper and more advanced version of HoloLens until 2019, according to a report this weekend by Brad Sams, a writer following Microsoft news.

As of now, only businesses and developers can buy the HoloLens headset for $3,000. The HoloLens, which debuted in March 2016, incorporates augmented reality technology in which users can see three-dimensional digital graphics overlaid onto the real world.

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Microsoft (MSFT) originally planned to release a second-generation version of the HoloLens that would have been a bit smaller and cheaper, but would have only been a minor upgrade, according to Sams. Now, Microsoft is ditching the second version altogether to focus on a third version that will be a significant improvement.

Microsoft is willing to wait apparently until a possible 2019 release of a new version of the HoloLens because the company feels it’s at an advantage compared to competitors and can afford to wait. A Microsoft spokesperson told Sams, “Mixed reality is the future of computing, and Microsoft HoloLens is the future and present of mixed reality.”

One of the tech giant’s closest competitors in the augmented reality space is the startup Magic Leap, which has a reported valuation of around $4.5 billion. Magic Leap has recently been hit by a series of articles from publications like The Information and Business Insider, which have raised questions about whether the startup’s technology is as good as it claims.

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Apple (AAPL) has not publicly said it is working on AR technology, but numerous media outlets have reported that the company is considering building its own AR glasses. Apple CEO Tim Cook recently said in an interview with the Independent that he regards augmented reality tech “as a big idea like the smartphone,” but he did not confirm whether Apple is actively working on the tech.

Fortune contacted Microsoft for more information, and will update this story if it responds.

Update: Tuesday, 12:46 PM PST. A Microsoft spokesperson reiterated the company’s statement given to Sams and said “Our commitment requires no roadmap.”

About the Author
By Jonathan Vanian
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Jonathan Vanian is a former Fortune reporter. He covered business technology, cybersecurity, artificial intelligence, data privacy, and other topics.

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